Market Review 2021 - Petrol Retailers Association
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Total Support We are proud to announce that we are developing a network of service stations with the support and expertise of Total. Becoming a Total franchise offers: • The power of the Total brand. • A flexible contract that works for you. • A guarantee of quality and safety. • World-class innovation. • Access to Total’s premium fuels. • The Harvest Energy fuel card scheme. • Expert advice and support from • Security of supply from a leading our dedicated UK team. fuel distributor. To find out how we can easily help fuel your business contact us today. +44 (0) 1932 843 354 harvestenergy.com
Market Review HELP US TO HELP YOU, THE INDEPENDENT CONTENTS 2021 FORECOURT RETAILER, BY SUPPORTING REVIEW OF 2020 4 YOUR TRADE ASSOCIATION NOW POLITICAL “Together we REPRESENTING YOU 12 are stronger” MEMBERS THE PRA ZOOMS IN 18 ASSOCIATE MEMBERS 20 TECHNICAL THE ARRIVAL OF E10 24 CAR WASH COMING CLEAN 28 BRIAN MADDERSON OIL MARKET OVERVIEW CHAIRMAN MARKET BY NUMBERS FROM EXPERIAN CATALIST 34 M arket Review 2021 is the seventh ENERGY TRANSITION consecutive issue of the PRA’s publication ACCENTURE DISCUSSES NEW PATHS FOR RETAILERS 42 that has become an industry landmark, available both in print and PDF format on our BP ON FOCUSING ON OPPORTUNITIES NOT THREATS 44 popular website www.ukpra.uk It is read by BUSINESS governments, civil servants, financiers, fund BUSINESS RATES UPDATE BY MUA 48 managers, bankers, lawyers, insurance companies, PROPERTY VIEW FROM CHRISTIE & CO 50 providers of products and services to this LEGAL UPDATE BY MILS 52 fascinating and evolving industry before we even RETAIL mention the retailers themselves! Of course, 2020 will go down in history as the IGD DISCUSSES NEW OPERATIONAL CHALLENGES 54 “Year of the Global Pandemic” but as I pen these EUROMONITOR REVIEWS THE FORECOURT CHANNEL’S PERFORMANCE 56 words we are all excited and hopeful that the swift THE FORECOURT SHOW 2021 58 arrival of vaccines will soon provide the beginning of the end. In the summer, we wondered whether it would be possible to produce a Market Review in its Who’s who at the PRA usual form due to the severe impact of COVID-19 on PRA MANAGEMENT TEAM PRA TECHNICAL COMMITTEE Brian Madderson, Chairman Gordon Balmer, PRA so many companies. However, we were surprised 07768 608332 brian.madderson@rmif.co.uk Matthew Bellamy, Certas Energy and very grateful that sponsors, both established Gordon Balmer, Commercial Manager Ray Blake, PRA and new quickly pledged support that has made this 07771 834073 gordon.balmer@rmif.co.uk Nicholas Brocklehurst, Westbridge Motors latest issue not only possible but perhaps one of the Phil Monger, Technical Director (Northampton) Ltd best. My sincere thanks to you all. 07831 327990 phil.psac@gmail.com J Brownsey, Fordingbridge Garage Ray Blake, Technical Manager Rodney Carter, Vapour Control Systems During the pandemic crisis which has seen 07496 967269 ray.blake@rmif.co.uk Michael Garner, The Garner Group so many important and varying government Steve Coombe, Membership Manager Gill Howkins, F Howkins and Son interventions, not made any easier by “health” 07831 373205 steve.coombe@rmif.co.uk Graham Lambert, St Michaels Garage Ltd being a devolved policy, we have been struck by Alexander Russell, Director of Strategy 07881 Andrew Lawrence, Lawrence Garages the magnificent entrepreneurial spirit shown by 502581 alexanderrussell068@gmail.com Ben Lawrence, Lawrence Garages Margaret Erwin, Moto Hospitality our roadside retailing sector. Categorised as an PRA EXECUTIVE COMMITTEE Emma McVie, Southern Co-operative essential service you have kept the wheels of the Brian Madderson, Chairman Phil Monger, PRA medical teams rolling and those of so many critical Mike Garner, The Garner Group Barry Onions, Petroassist industries too – the tribute on the front cover is Ashley Kay, The Kay Group David Sommers, Hampshire Trading Standards Andrew Lawrence, Lawrence Garages (London) Paul Suchodolski, Rontec very well deserved! Aziz Patel, The Brookfield Group John Ryeland, George Hammond plc Hemant Tandon, Park Garage Group Cover image: Grace, aged 9 Mark Wilson, Fraser’s Retail The Retail Motor Industry Federation (RMI) is a leading automotive trade body in the Publisher: Simon Lewis UK, representing franchised car PRA MARKET REVIEW is published by Editor: Tracy West and commercial vehicle dealers; Lewis Business Media Ltd, Art Editor: Sarah Crowhurst independent garages; bodyshops; motorcycle dealers; petrol Suite A, Arun House, Office Village, Sales: Rachel Hallett retailers; auction houses and cherished number plate dealers; River Way, Uckfield, TN22 1SL Printed by: Stephens & George Print Group, who provide sales and services to motorists and businesses Tel: 01825 983105 Goat Mill Road, Dowlais, Merthyr Tydfil, CF48 3TD across the UK. Fax: 01825 983108 ©Lewis Business Media Ltd 2021 201 Great Portland Street, London W1W 5AB Email: kay@lewisbusinessmedia.co.uk All rights reserved. Tel: 020 7307 3598 • Fax: 020 7307 3406 • www.ukpra.co.uk www.ukpra.co.uk 03
REVIEW OF 2020 Market Review 2021 2020: A YEAR LIKE NO OTHER PRA and CWA chairman Brian Madderson reviews a tumultuous year, when members really rose to the challenge F irst, I would like to pay tribute key workers in the NHS, police and fire COVID-19 and a sharp reduction in oil prices as the ‘climate action’, to all our members, their teams services through discounts on fuel was effects of COVID-19 started to affect including an earlier and families for keeping the critical. ban on the sale of their industry and consequently the new petrol and diesel country fuelled and fed during these So many things have happened demand for oil. Brent crude oil prices vehicles, dominated unprecedented times. Our front cover this year, it’s been difficult to recall much of 2020 fell 20% to below $55/barrel and both depicts a poster, which Grace, aged everything, so to help me chronicle BP and Shell reported a fall in profits. nine, sent to us completely off her own them I have used the back copies of There was also news of a crackdown bat (and is reproduced with the kind Petrol Heads-Up (PHU) as a guide. on rogue hand car washes. In a permission of her parents), and I think In January, we saw rises in fuel strongly worded speech to the it says it all. prices caused by US/Iran tensions Resolution Foundation, Matthew Taylor, 2020 was the most challenging year following a drone strike by the US on the interim director of the Office for many of us can recall. Our industry an Iranian general, and also some Labour Market Enforcement (OLME), had to adapt to the highly unusual vague reports about a virus in Wuhan, called hand car washes “endemically circumstances including different China. non-compliant” and recommended ways of working, changes in how we February saw the Government tighter regulations through a national serve our customers, extra hygiene unveiling a plan to bring forward the Licensing Scheme. We are waiting precautions and also increased ban on new petrol and diesel vehicles, to see how this will play out post- contactless payment. The speed of the from 2040 to 2035. Boris Johnson said pandemic. changes that members were able to that 2020 would be a “defining year of March saw the Government implement was absolutely remarkable. climate action”. invite responses to a consultation for Also, the support provided by oil Meanwhile, in China people were the introduction of E10 petrol. The companies and fuel card companies to falling ill from a new virus and we saw PRA had been actively working with ▹ 04 www.ukpra.co.uk
UNITED FOR BETTER PROFITS “Since moving to Budgens our turnover has doubled, and our margins have improved.” Goran Raven, Budgens Abridge At Budgens our team support you all the way. With our Regional Development Managers, fresh food team and expert marketing advice your store will be up and running with growing profits in no time. Which is why in the HIM 2019 symbol track report Budgens had the highest “likely to recommend” score of all symbol groups*. Join us now! call 0808 178 8644 or visit joinbudgens.co.uk *HIM symbol track 2019
Supporting Independent dealerships Going places together We are here for you every step of the way. >20 24/7 500 supply locations service from our in-house drivers nationwide dedicated UK team To find out more about Greenergy’s winning formula, contact our territory managers. 020 7404 7700 greenergy.com/independent-retailers Great brands. Great price. Great service.
REVIEW OF 2020 Market Review 2021 ▹ the Department for Transport and even took a delegation of members to meet them to explain how this could be practically implemented. Our main recommendations were that the introduction should be mandated, E10 needs to contain a specified minimum level of ethanol and this needs to be supported by a Government public awareness campaign to support a successful launch. NATIONAL LOCKDOWN On March 23, the UK entered into a national lockdown brought on by worsening infection rates related to COVID-19. The PRA was involved in discussions with the Department for Business Energy and Industrial Car washes were deal not just with the Westminster celebrated VE day and for most of us a major bone Strategy (BEIS) to help coordinate our of contention Government but with the Edinburgh the weather was fine. We were allowed industry response. We quickly lobbied during lockdowns, Government and the National some respite to celebrate – socially specifically whether the Treasury to ensure that PFS were they should be Assemblies in Cardiff and Belfast, and distanced – with our neighbours. This included in any financial relief offered allowed to operate successfully negotiated much improved came as some relief to many people or not to retail outlets as they had been since packages on business rates for both who were on their own and helped our intervention with the Financial our Scottish and Northern Ireland people to reconnect socially. As the Secretary in late 2014. retailers. Queen and Dame Vera Lynn reminded We quickly set up a specific section As the lockdown started to bite, us “We’ll meet again!”. of the members’ website where all members saw a dramatic fall in fuel the relevant documents to highlight sales volume which was down to FALLING FUEL VOLUMES the instructions to our members around 40% of normal trade. Indeed, As fuel volumes continued to remain could be found. These reviewed the Easter Sunday on April 12 saw a low with traffic well down, the PRA financial package available including new low with fuel volumes falling to defended members in the media on cash grants, a business rates holiday, 19% of normal business. To alleviate the matter of fuel pricing. Some so- business interruption loan scheme and this impact the PRA called upon oil called ‘commentators’ suggested that also the furlough scheme. We were companies to offer bespoke credit retailers were profiteering given falling instrumental in defining the role of extensions and most responded very oil prices. What they failed to take key workers, ensuring members and positively. account of was that many retailers were their teams could continue to remain While there was a huge drop in fuel fighting for their business lives and open. We also published an article in volumes, many members reported needed every penny they could get from PHU outlining the National Emergency increases in their shop-only trade. falling fuel volumes to allow them to Plan – Filling Stations – in case the We also published details of remain open. Government decided to enact this. And members’ best practice, illustrating We also had some much-needed we published a Q&A on what COVID-19 how members could adapt their good news. The PRA, in conjunction would mean for members’ businesses. businesses to protect their staff and with lawyers, successfully obtained As health is a devolved power, we customers. a substantial out-of-court settlement had to We saw the start of the ‘Clap for for members who applied to recover Carers’ in support of the NHS and erroneously charged card interchange found ourselves standing on our fees. Lawyers acting on members doorsteps every Thursday night. behalf were able to argue that “The During this time, the CWA also European Commission found that successfully lobbied for the continued the MIF (interchange fee) restricted opening of automated car washes and competition by inflating the base on the closure of hand car washes. The which acquirers set charges to retailers, CWA obtained an agreement from BEIS thereby setting a floor under the MSC, that automated rollover and conveyor without which retailer payments would The PRA actively car washes and jet washes do not have been lower”. The funds, which we worked with the involve close contact between staff and were able to return back to the circa Department for Transport on the customers, and therefore the risk of the 100 members who had applied to the issue of introducing spread of the virus would be negligible. scheme, came as a welcome surprise E10 petrol In May the whole country during this gloomy time. Overall, this ▹ www.ukpra.co.uk 07
REVIEW OF 2020 Market Review 2021 “During the lockdown, “Decarbonisation of Transport”. In a letter to the Prime Minister we made of the coronavirus pandemic and that demand for forecourt sites would the PRA worked with the points that: “There must be room for hydrogen, for cleaner petrol and continue to pick up from all types of buyers. Ernst and Young to help diesel and for innovative road transport fuels so that the UK doesn’t become BUSINESS BULLETINS devise ways to work dependent on China for essential battery parts… Mandates such as September also saw the start of our autumn programme of Business safely during COVID” forcing all petrol filling stations to have Bulletins. As we were not able to meet electric charging points are simply not you all at our regular events and had feasible.” become experts in using Zoom, we ▹ project realised a total exceeding £1.2m July saw the PRA’s team of Gordon started a series of online events. These with some group members reclaiming Balmer, Ray Blake and Phil Monger have been extremely well received by up to £100k. Another example of how continue to work with the Department members, some of whom commented PRA can directly benefit “bottom lines”. for Transport on the Decarbonisation that this is the way forward. We were During the lockdown, the PRA of Transport. Virtual workshops were also able to attract a diverse number of worked with Ernst and Young, the held asking for our input. We continued excellent presenters. However, there is Government’s appointed consultants, to argue the point that greener no substitute for meeting face-to-face who were tasked with devising ways to transport goals should be market and so we look forward to when this work safely during the pandemic. The led, questioning the current focus on might be allowed. PRA advised on practices on working electric vehicles. This was reinforced in In October we learnt that Asda safely in a retail environment and also a letter sent to PM Boris Johnson. was to be sold to a consortium led on outdoor working. In August, there was some good by TDR Capital and supported by In another excellent lobbying victory, news as data was released showing brothers Zuber and Mohsin Issa – the PRA challenged the Northern that symbols and independents had founders of PRA member EG Group. Ireland Assembly and obtained a seen a 45.4% growth in sales in the 12- We commented: “We can see a range significant concession allowing 100% week period ending August 9. The data of interesting possibilities for the tie-up COVID-19 business rate relief to be revealed that shoppers spent £660m as EG Group has had a meteoric rise extended to stores with a selling area in symbol and independent stores, up specialising in providing roadside retail up to 500m2 until March 2021. from £460m in the same 12 weeks in to the consumer. We also learnt this Our press release said: “We were 2019. August also marked the start month that both brothers had been extremely pleased that following of the ‘Eat Out to Help Out’ scheme, awarded CBEs in the Queen’s Birthday constructive discussions, the Northern The PRA welcomed which prompted a significant uplift in Honours list for their contribution news that the High Ireland assembly has confirmed that Court appeal by footfall in the hospitality sector. to business and philanthropy; many their COVID-19 business rates relief, the VOA on the In September, we learnt from congratulations.” levying of business originally limited to forecourt shops rates on through- Steve Rodell, managing director of The Department for Transport issued up to 300m2 of selling space, has now the-wall ATMs had retail at commercial real estate agents its advice to motorists, which said: failed, meaning been extended to forecourts with a compensation for Christie & Co, that the forecourt sector “Only visit petrol stations if you really shop area up to 500m2. These large many members has proven to be resilient in the face need to”. As this filtered down into ▹ local facilities will now deservedly benefit from this significant extension to business rate relief. We are much encouraged that Land and Property Services took on board our view and revised their initial proposal to the Minister for Finance in a way that will ensure all forecourt shops are treated fairly.” The PRA also welcomed the news that the High Court appeal by the VOA on the levying of business rates on through-the-wall ATMs had failed. Thus members who had paid the rates directly would now be able to claim these back and those whose transmission fees had been reduced by their equipment providers had grounds to seek compensation. In June the PRA continued to work on its response to the 08 www.ukpra.co.uk
WITH PRECISE ENGINEERING AND ATTENTION TO DETAIL, THE HELIX PUMP IS A SOUND INVESTMENT FOR YEARS TO COME. PETROASSIST UK IS AN OFFICIAL WAYNE DISTRIBUTOR Known for the reliability and longevity of Wayne pumps, the Helix fuel pump is a safe investment for years to come. the Wayne Helix pump and our forecourt services. www.petroassist.uk 1 Dryden Court, Bilston Glen Industrial Estate, Loanhead EH20 9HT, PHONE 0131 440 5810 uk.sales@petroassist.uk PROGRESS 2 YEAR WARRANTY A WIDE RANGE OF OPTIONS AS STANDARD WITH ALL PETROTEC FOR YOUR BUSINESS MODELS PROGRESS 1000 PROGRESS ADBLUE 3000 PROGRESS 5000 HH www.petrotec.uk w petrote Unit 3, Lantern Commercial Park London Road, Flamstead - St Albans, AL3 8HG, UK PHONE 01442 219733 - info@petrotec.co.uk
REVIEW OF 2020 Market Review 2021 ▹ Mohsin and Zuber dissent. In its statement, the group Issa had a successful 2020, as part of a reiterated a continued commitment consortium buying to a stable market, the mutual Asda, and then both receiving CBEs interest of producing nations, the efficient, economic and secure supply to consumers, and a fair return on invested capital. Turning to 2021, when we return to some form of normality is anyone’s guess, however, it will largely depend on the roll out of the various vaccines that have now started to become One of the challenges available. of 2020 was applying social distancing Other challenges we will have to rules in stores deal with are the increasingly uncertain picture on a negotiated deal with the “Despite the challenges, washes were subject to closure. We sought clarification on the EU over Brexit, and lower fuel volumes. However, I still believe our industry is I believe our industry last point, mentioning to BEIS that automated car washes, unlike most much better placed than other sectors. The vision many members had to is much better placed hand car washes, were COVID-19 compliant, there being no human invest in their shops has paid off with many reporting record sales. We can than other sectors” intervention with cashless payment methods. Initially BEIS gave us adapt our business model on fuel to cater for lower demand and as we have permission to advise members that heard from Steve Rodell of Christie and the media, and realising the adverse they were able to keep car washes Co, petrol forecourts are still very much impact on our members, the PRA open that were part of a petrol station. in demand. Indeed, as we go to press reacted quickly and was able to obtain However, they subsequently softened there has been further consolidation a retraction and clarification within 24 this to say that this pronouncement with MFG adding six sites to their hours. The Department for Transport had no ‘teeth’ and that enforcing estate from AUK Investments. subsequently admitted a wording error authorities would rely on the drafted Members are taking advantage of the and went on to issue an amendment legalisation. good margins to be earned in properly saying: “To be clear – petrol stations We kept members informed about run compliant vehicle valeting. In Car and motorway service areas remain this development which has caused Wash News, we showcased the new vital in providing a safe place for confusion, not least from MPs who Adriateh Jet Wash facilities installed by motorists to stop, refuel and take a advised some members that their Nick Brocklehurst and David Charman. short break”. automated washes could remain open. As the CWA continues to gain traction As October drew to a close, Wales On December 2, England emerged within the Government for a single entered another lockdown and we from a national lockdown into a new enforcement body (SEB) and an industry again kept the pressure up on the tiered system just as Wales entered a licensing scheme, we hope that there will Welsh Government to allow COVID-19 new lockdown and further restrictions be a “renaissance” in vehicle valeting, compliant car washes to be allowed to were planned in Northern Ireland and after all EVs need cleaning as well. remain open. Scotland. Finally, as we close off a truly On November 5, England entered Amid all of this the oil industry unforgettable year, which has lockdown 2. Legislation that was worded didn’t stop and we recently learned challenged us all to the limit both by the Department of Health and Social that OPEC+ has finally managed to professionally and personally, all that Care listed that petrol stations could reach a production cut agreement remains is to wish you all a much remain open but unlike lockdown 1, car after several days of increased internal happier and safer 2021. 10 www.ukpra.co.uk
Join Londis today “We are delighted with the success and watch your profits of our Food-to-go grow offer. The support we receive from the Forecourt Development Team is great and has helped boost our RAKERRIGMIiCAMSKX` ” - 00% Cost-Free model - Earn up to 5% discount* - Dedicated Forecourt Ashton Gardner Development Team Londis Westacre Service Station Visit the Londis 360 virtual tour at: http://360.skyeyeplus.co.uk/files/LondisTriangle/ Call us on 0808 178 8644 or visit joinlondis.co.uk * Terms and Conditions apply.
POLITICAL Market Review 2021 REPRESENTING YOU sustainable biofuels, hybrid and electric aircraft to lessen and remove the impact of aviation on the environment and Working with Pepper Public Affairs, the PRA/CWA continue to by 2050, zero emission ships will be represent your interests and provide input into Government commonplace globally.” policy which will ultimately affect our industry The document was issued on March 23, the same week lockdown was announced. A further consultation T he year 2020 was unprecedented Public transport and active travel was also requested in parallel with in many ways, not least with will be the natural first choice for our this concerning the bringing forward the number of Government daily activities. We will use our cars less of the date by when all new internal consultation documents we were asked and be able to rely on a convenient, cost- combustion engines (ICE) and hybrid to work on. As you would expect, the effective and coherent public transport vehicles will be banned for sale, from new Government was keen to make its network. 2040 to 2035 or even sooner. mark with a raft of new legislation. From motorcycles to HGVs, all During the summer, the PRA In March, things kicked off with the road vehicles will be zero emission. participated in a series of workshops issuance of the Government’s tent Technological advances, including to discuss this in more detail and it pole document “Decarbonisation of new modes of transport and mobility culminated in our response to the Transport – Setting the Challenge”. innovation, will change the way vehicles Government. Our main points were: The document states in the Ministerial are used. The Government needs to be fuels Forward, written by Grant Shapps MP, Our goods will be delivered agnostic, they cannot simply “bet the Secretary of State for Transport, that: through an integrated, efficient and house” on electric vehicles with all the “Through the Transport Decarbonisation sustainable delivery system. questions of developing a substantial Plan, 2020 will be the year we set out Clean, place-based solutions will charging network, affordability, the the policies and plans needed to tackle meet the needs of local people. Changes reliance on foreign technology and how transport emissions. This document and leadership at a local level will make to replace fuel excise duty unanswered, marks the start of this process. It gives a an important contribution to reducing while ignoring the benefits of low carbon clear view of where we are today and the national GHG emissions. liquid fuels and hydrogen. size of emissions reduction we need. The UK will be an internationally On November 17, the Government “In the coming months we will work recognised leader in environmentally announced that it would bring forward with you to develop the plan, with a sustainable, low-carbon technology the banning of the sale of new ICE vision for how a net zero transport and innovation in transport. vehicles to 2030. system will benefit us all: “We will lead the development of Boris Johnson said: “We’ll invest ▹ 12 www.ukpra.co.uk
Saving you money & time on your energy supplies... PRA UTILITIES WILL: DON’T JUST TAK Save you time and money by researching the E OUR WORD FO R IT... entire electricity and gas markets on your behalf Applegreen pl c / Petrogas Gro We began workin up UK Ltd Avoid you getting caught on expensive out of g with PRA Utilitie have called on th s in 2010, and eir services regu contract rates arrange new ener larly since then to gy deals for our business. Ensure you are not ‘locked in’ to long term high During the time we have worked progressively ac together, we have price contracts quired many ne w sites, and the team at PRA Utili ties has been ex us in arranging ne tre mely helpful to Align multiple supplies to one renewal date to w energy deals for the sites ease your future administration as we took them over. They offer a full Advise on Change of Tenancy, new meter all round service contracts throug that manages h to implementa installations, and supplier objections and new supplie tio n with existing rs. We would be recommend thei happy to Provide access to energy efficiency products r service to othe r firms. and services Peter O’Conno r @ Petrogas If you would like to discuss your own energy situation with PRA Utilities then please contact us on: prautilities@spiral-group.co.uk
POLITICAL Market Review 2021 ▹ more than £2.8bn in electric vehicles, The PRA lobbied 80% of all other goods. It will be the hard around the lacing the land with charging points and introduction of E10 consumer that has to bear the brunt of creating long-lasting batteries in UK in the UK and, as a any increased transport costs. result, achieved its gigafactories. This will allow us to end key objectives “The PRA propose that cyclists and the sale of new petrol and diesel cars other road users should also be included and vans in 2030. However, we will allow in any pay-by-the-mile approach and they the sale of hybrid cars and vans that pay the same rate as petrol and diesel can drive a significant distance with no vehicles, as a tiered pricing system carbon coming out of the tailpipe until would be wholly discriminatory.” 2035.” In March, we responded to The PRA’s response, which has been consultation on the introduction of E10 widely reported in the media, was: petrol, further details on this can be “The PRA support the process found on page 20. In April, we received of decarbonisation, but we need a feedback confirming that we had comprehensive plan to reduce carbon achieved our objectives of convincing emissions that works across sectors and the Government that the introduction industries, including aviation. should be a “mandated” one rather than “The plan to ban sales of ICE vehicles commercially led and that E10 should by 2030 would leave the UK reliant contain a minimum of 5.5% ethanol. It is on Chinese battery technology. Our members feel strongly that Government “In April, the PRA expected that E10 will be introduced in the autumn of 2021. has not done enough to develop low- achieved its objective of During 2020, we started to notice carbon liquid fuels and hydrogen as an alternative to EVs, particularly when getting the introduction a sharp increase in the biofuels price, FAME and ethanol, with biodiesel the German Government is putting €7 billion into speeding up the market of E10 mandated” breaching $1,000/tonne. The Government became concerned that rollout of hydrogen technology without the capped price at 30ppl for Renewable similar commitments in the UK. Transport Fuel Certificates was set too “To give an idea of the level of with less disposable income. Penalising low and that fuel suppliers could simply investment this policy will require, the ICE drivers who can’t afford to make the “buy out” their obligation as opposed to French Government have announced transition to an EV is no way to foster a blending the physical product. over €30 billion worth of green funds, yet new market in alternative fuels and, as The Government’s consultation on are sticking with a 2040 ban. Even with ever, the biggest tax burden will fall on this gave us just two weeks to respond their sizable investment, they do not those least able to afford it.” and during this time we engaged with believe any date sooner is economically We also issued a further press release the Low Carbon Fuels Regulation team and practically feasible. on the matter of rumoured road pricing: within the Department for Transport. “Technical and commercial challenges “We are deeply concerned about the We made the points that the price remain in establishing the electric Government’s potential road pricing for the certificates was irrelevant for charging infrastructure required for proposals. It is unfathomable that our members, as we are charged a mass EV take-up. This is particularly the Government would introduce a combination of the cost of petrol and apparent at petrol forecourts where measure that would only succeed in diesel and the biofuels price, and many of our members have abandoned discriminating against the poorest in not the actual cost of the certificates. plans to install ultrarapid charging society. We also mentioned that the way points. This is due to a lack of local “Public transport infrastructure wholesale product prices are calculated power sub-stations, onerous regulation in rural communities is near non- is becoming far too complicated. and lack of return on investment. existent, with millions solely relying on The outcome of this is that the price The PRA responded “People driving second, and third- to the Access to Cash their private vehicles to travel. If the for RTFC is now set at 50ppl to be hand ICE vehicles are generally those Consultation regressive road pricing ‘poll tax-like’ effective on January 1, 2021 subject to regime came into force, those living Parliamentary approval. in rural areas on low incomes would In July, we received another be hit the hardest as it could become consultation on red diesel which unaffordable to run a car. This method stated:“The Government has a of taxation has already been rejected consultation to seek views on whether it by the British public in 2007, when has overlooked any exceptional reasons proposed by the Labour Government, so why other sectors should be allowed to it is startling to see that these proposals continue to use red diesel beyond April are even being considered. 2022. The consultation asked for views “There has been a clear lack of on the Government’s proposals for consideration to the inflationary hit implementing the changes announced to goods and services. 100% of fresh at Budget and is also seeking further food is moved by road, along with over information about the current end uses ▹ 14 www.ukpra.co.uk
The big star in fuel. We understand what dealers need to be successful in the highly competitive fuel industry. Take a moment to give us a call and find out what the Texaco brand can do for your business. Our offer includes: zSecure supply of quality fuel from our Pembroke refinery and nine UK terminals z Highly competitive supply agreements z Supreme Unleaded and Supreme Diesel z The UK’s most rewarding fuel loyalty programme z An industry leading delivery service with auto-replenishment available z Wide range of fuel cards accepted including BP and Shell z Dedicated support from your Valero local area manager z The backing of Valero, the world’s largest independent refiner Contact: 020 7513 3737 customercare@valero.com www.texaco.co.uk © Valero Energy Ltd 2020. All rights reserved. TEXACO and the STAR T Logo are registered trademarks owned by Chevron Intellectual Property LLC. Used with permission.
POLITICAL Market Review 2021 ▹ of other rebated fuels, such as non- On valuations, which are currently With regard to the sector EU Exit group. decarbonisation of aviation kerosene and fuel oil.” done every five years, we have said that transport, the PRA’s Working on the National Retail It also mentioned that they are this should be reduced to two years view is that the Crime Steering Group reviewing retail Government needs serious about tackling climate change and additionally have suggested that to be fuels agnostic crime and how retailers, through better and improving the UK’s air quality. pre-COVID 2019 valuations should be and not “bet the working with the police, can help to house” on electric At Budget 2020, the Government cancelled and replaced with those post- vehicles but consider reduce this. announced that it will remove the COVID. other fuels such as On forecourt crime, working with hydrogen entitlement to use red diesel from April In October, we received another the Home Office and the police to 2022, except in agriculture (as well as consultation on “Access to cash”. This improve the flow of information to forestry, horticulture and pisciculture), was in response to the plethora of catch criminals. rail and for non-commercial heating closures of ATMs or the conversion Lobbying the Treasury to reduce (including domestic heating). from free-to-use to pay-to-use. The fuel duty to kick start the recovery post- Our response to this was to mention Government has bowed to a number of pandemic. that, in our opinion, this has nothing pressure groups who have lobbied that The Car Wash Association has to do with climate change and is an if the UK “sleepwalks” into a cashless attempt to raise taxes. If it was about society, then around three million people improvements to the climate then they would have also included the two who rely on cash to run their lives will be left behind. “Removing the biggest users of the product, agriculture Reforms under review are changes entitlement to use red and rail. to the authority which regulates this, We also mentioned that there could amendments to the interchange fees diesel has nothing to do be an increase in costs of construction projects and that any administration paid by the banks for transactions at ATMs, non-purchase cashback at with climate change but around the issuance of red diesel should not fall on the retailer. We are awaiting retailers and improvements to the system of depositing cash. Further is about raising taxes” the outcome. details on this are available on our In September, HMRC issued a members’ website. also been very busy lobbying BEIS, the consultation on business rates, which Our last consultation of the year Department for Health and Social Care was split into two parts between has been to respond to a Government (DHSA) and HMRC to keep automated September 18 and October 30 – one enquiry on Tax Post COVID-19. At the car washes open during the lockdown, addressing urgent measures needed in time of writing we are still working on ensure that the National Minimum the short term with regard to COVID, this, but provisionally we will be seeking Wage is paid at hand car washes (HCW) and the other seeking our views on long- lower and simpler business taxes to ease and holding discussions with various term reform of the rates system. Our the burden on our members. As per MPs highlighting the human misery of main points in responding to this were all consultations, our response will be non-compliant HCW. Further details that the multiplier, which has increased available on the members’ website. of the work we do as the Car Wash from 35p/£ in 1990 to an inflationary Other areas we have been working on, Association are reviewed later in this 51p/£ 2020, should revert back to 39p/£. on your behalf, include: publication. We also said that, on the matter of Participating in the Downstream The PRA/CWA is working hard reliefs, this should be maintained at Oil Industries Forum, where we meet to represent you. If you have any 100% for PFS until the pandemic is with the Department for Business, comments, or wish us to include a point officially under control, thereafter a Energy and Industrial Strategy (BEIS) to you want to make to government, then step reduction to 50% for a further 12 discuss the response to the pandemic. please email us at months. Participating in the Oil and Gas memberfeedback@rmif.co.uk. ▹ 16 www.ukpra.co.uk
Reduce Cash Losses BY UP TO 90% Achieve Cash Handling Excellence with the SMARTtill Solution®: Enhanced Customer Save Up to 35 Minutes per Experience Till per Day Automatic Real-Time Instant Cash Data and Alerts Balancing by Shift, Time, Cashier and Transaction ¨ Learn More About the SMARTtill Solution® www.cashdrawer.com | sales@eu.cashdrawer.com by
EVENTS Market Review 2021 THE and many of these offer something new in terms of new technology. The PRA events are an ideal showcase to PRA relay their stories and messages. In 2020, we were very grateful to the following organisations who presented ZOOMS to members: Allego CBE IN... Certas Energy Christie & Co EdgePetrol EKW Group PRA Business Breakouts and Bulletins, The EV Network from on the road to the comfort of your own sofa Forecourt Eye GripHero P RA events have transformed technology and, in particular Zoom, Henderson Technology somewhat since the spring of the PRA was back up and running Petroassist 2020, when hosting an event again. Our first Business Bulletin took Winckworth Sherwood LLP in front of 30 attendees in a packed place on September 24 and PRA TV At the time of writing, news has room switched to presenting to was broadcast into our members’ broken regarding the availability of similar numbers from a living room, living rooms and offices up and down a successful vaccine to counteract kitchen or study. Our face-to-face the country. Although we did not have COVID-19. This being the case, life Business Breakout events kicked off at the intimacy of a face-to-face meeting, will hopefully return to normal and the Sandy Park, Devon in February, then the message from the Association was chance to host events and meetings continued into March at the Cheshire still heard and understood. will once again be possible. Roadshow and on to the terrific setting As always with new concepts and This year will be an important one of Brands Hatch race track on March delivering via a digital platform, there for forecourt retailers, particularly with 12. After this meeting finished and were going to be some technical the Forecourt Show planned for mid- the delegates started to make their hiccups. From screen-sharing issues April at the NEC. We have also booked way home, little did we know that to sound problems, we did experience provisional dates for Durham in May this would be the last time we would them all – but the accolades from and Newmarket, Belfast, Cardiff and see our members in the flesh due to those watching and listening were Worcester for the autumn. Likewise, the rapid rise of COVID-19. National extremely positive and well received. Forecourt Roadshows have been lockdown started just a week or so later The content of the PRA presentation pencilled in for the spring at Knutsford and all remaining spring events were was focused very much around the and in Northern Ireland. cancelled. pandemic and how it was affecting The PRA is eager to meet members As the year progressed and retailers’ volumes and, as a trade body, face-to-face again, as it’s always good coronavirus restrictions were firmly how we were able to offer help, advice to chat over a coffee and a decent in place, the events planned for the and information as required to satisfy lunch. Not forgetting the important autumn were being cancelled within our members’ questions and interests. news/updates that we have always the industry on a regular basis. To help you run your business better, brought as fuel retailing and car Eventually we also had to concede we ask certain companies to present, washing continually evolves. and, with a heavy heart, postponed If circumstances change and we the entire Autumn Programme – roadshows at Exeter, Belfast and “The PRA is eager to cannot meet, then we can always still use Zoom to keep you posted. Wakefield, plus the Breakouts scheduled for Durham, Newmarket, meet members face- Confirmed details will be on our website – www.ukpra.co.uk/ Falkirk, Cardiff and Worcester. However, thanks to modern to-face again” en/events or watch out for your personal invitation in your inbox. The PRA’s events are always well attended Third-party companies Meetings moved to use the PRA’s events to Zoom but will return as showcase new services soon as is safe to do so 18 www.ukpra.co.uk
ASSOCIATE MEMBERS It’s more important than ever that PRA members are provided with the best products and services to help them run their businesses as efficiently as ASSOCIATE possible. The PRA has strong links with the following Associate Members, MEMBERS who provide excellent products and services to our industry: ACCENTURE FORECOURT EYE Accenture is a leading professional services Forecourt Eye has developed a viable and proven company with capabilities in strategy, consulting, solution that delivers high ‘loss recovery’ results and digital, technology and operations. bottom-line savings to forecourt operators. In addition, it helps with crime reduction making sites safer for both employees and ALLEGO customers. Allego is one of the leading providers of charging solutions and EV cloud services in Europe. FRANCHISEE FIRST Franchisee First is an innovative provider of fuel APG CASH DRAWER bonds, as a simple, cost effective means of meeting a APG Cash Drawer is a global manufacturer of dealer’s financial security obligation to their wet-stock suppliers. cash management solutions serving a variety of customers and industries. GRIPHERO GripHero provides the most effortless, easy-to-use ATLAS ENERGY MANAGEMENT and convenient way possible for keeping hands clean Atlas Energy Management operates across 18 cities at the pumps – dispensing recyclable hand-protection directly from globally and is now bringing its equipment, installation the nozzle. and maintenance expertise to the UK. HENDERSON TECHNOLOGY CBE Developed for the convenience and fuel forecourt CBE is recognised as one of the leading innovators within market by Henderson Technology, EDGEPoS is one the UK epos market. For more than three decades, it has of the only worldwide epos systems that has been designed by been providing innovative software solutions to a wide retailers, for retailers. range of retailers throughout the country. JACKAMAN INSURANCE SERVICES CHRISTIE & CO Jackaman Insurance Services has expertise in dealing Christie & Co is the leading specialist advisor for with the petrol retail industry and has bespoke buying and selling businesses in the convenience contracts, which have been developed for PRA members. retail and petrol filling station sectors. OTI PETROSMART EDGE PETROL OTI PetroSmart pioneered EasyFuel Plus – a scalable EdgePetrol gives dealers real-time access to their automated fuel management, fleet management and key metrics all in one place, allowing them to payment solution aimed at ensuring that the right amount make informed decisions around volumes, margins, pricing and of the right type of fuel is dispensed into the right vehicle. procurement to enhance the profitability of their business. PETROASSIST UK EKW GROUP Petroassist UK supplies, installs and maintains a broad EKW Group has over 80 years’ experience in providing range of forecourt equipment including fuel pumps, accountancy services to the forecourt sector. Services payment and control solutions, tank gauges and other ancillary range from detailed monthly management accounts, payroll and equipment. auto-enrolment, audit and compliance to tax and consultancy. PETROTEC UK EUROTANK SERVICE GROUP Petrotec UK focuses on the distribution of fuel Eurotank Service Group is the parent company of dispensers, car wash equipment and fleet management Eurotank Environmental, Eurotank Installations and systems, offering a wide range of flexible and custom- Europump Maintenance, which together have the capabilities to made solutions. provide all the fuel system services a fuelling facility needs. SAFETYCULTURE EUROPUMP MAINTENANCE SafetyCulture is a global tech company which helps Europump Maintenance takes on everything from businesses to achieve safer and higher quality pump and tank gauge maintenance, fuel management workplaces, with innovative audit technology. Its flagship product systems support and pump calibration to vapour recovery testing, – iAuditor – is a mobile inspection platform that simplifies the electrical testing and general reactive maintenance. auditing process. THE EV NETWORK WINCKWORTH SHERWOOD The EV Network was formed as a dedicated EV A full-service law firm with a diverse client base, charging infrastructure development company to Winckworth Sherwood prides itself on providing market-leading advice address the challenges faced by both site hosts and charge point across a broad range of sectors and markets. Clients include national operators in rolling out a network of EV charging infrastructure supermarkets and convenience store operators, oil companies and across the UK. several of the Top 50 independent forecourt retailers. 20 www.ukpra.co.uk
This is what Shell retailers think of our collateral-free security offering: “Straightforward “Simpler than a bank “Excellent setup and very guarantee, doesn’t product, hassle reasonable prices. affect personal free and set up I would like to do equity in our house straight away.” this to all my sites mortgage, and no NADZ Services Ltd. in the future.” legal fees.” V & M Brothers Ltd. Kam Retailing Ltd. In these difficult times, wouldn’t you like to avoid tying up your hard-earned assets as collateral for bank guarantees, cash or other security methods? As these Shell retailers have discovered, we offer an alternative way to meet your wet stock supplier’s payment security. Franchiseefirst bonds are the smart, collateral free, alternative. It’s online, quick, easy to apply for and costs less than you would expect. Available throughout U.K. and Europe. Contact your wet stock supplier now to see if Franchiseefirst bonds are available to you. www.franchiseefirst.com in partnership with
&7J[TQZYNTSNS +TWJHTZWY7JYFNQNSL +TWJHTZWYWJYFNQNSLNXTSYMJRT[JHMFSLJNXHTRNSLFSINYNX HTRNSLKFXY:SHJWYFNSY^TSYMJMNLMXYWJJYFSIFRT[JYTGFSSJ\ UJYWTQFSIINJXJQHFWXG^FWJUWJXJSYNSLJSTWRTZXHMFQQJSLJX YTYMJNSIZXYW^GZYYWZJ\NYMFQQHMFSLJLWJFYTUUTWYZSNYNJXFWJ HWJFYJI&Y98,\JMF[JRFS^^JFWXTKJ]UJWNJSHJFSIJ]UJWYNXJ NSYMJKTWJHTZWYXJHYTWFSIFWJNS[JXYNSLNSSJ\YJHMSTQTL^FX\JQQ FXUFWYSJWNSL\NYMQJFIJWXNS*;FSILFXKZJQQNSLXTQZYNTSX • Tokheim and Wayne Dispensers • Store Customer Count Solutions • Media & Pay Solutions • Kärcher Wash Solutions • Service & Maintenance Agreements • Tank Services • Alternative Fuelling Solutions Join us for the latest innovative thinking, GFHPJIZUG^^JFWXTKXJW[NHJFSI RFNSYJSFSHJJ]UJWNJSHJѰ 98,KTWKTW\FWIYMNSPNSLKTWJHTZWYX T : 0333 015 3001 E : enquiries.uk@tsg-solutions.com www.tsg-solutions.com/uk
23
TECHNICAL Market Review 2021 T he PRA has been working with for the motorist, who would not know water entry. So, what will the new the Department for Transport where to buy E10 and also the benefits proposal for retailers include? in a dedicated working party of doing so. This outcome will ensure Prior to the day of introduction, determining the best options for that a planned programme of publicity tanks and dispensers currently introducing E10 and the preparation will give both motorists and retailers supplying E5 will need to be re-labelled of a publicity campaign for motorists. advance notice of the introduction and with E10 and dispensers will need The pressure for a mandated allow motorists plenty of opportunity also to have a label regarding vehicle introduction, with E5 being replaced to check on the compatibility of their compatibility with E10 affixed. The by E10, has resulted in a proposal for a vehicle. actual wording has yet to be decided. mandated entry, and the industry has As proposed in the consultation, this There will be no need to change the requested for this to come into force should cause little expense to retailers. fuel in the tank on the first delivery for on September 1, 2021: this being the E5 may contain anything from zero it to be classed as E10, as the standard optimum choice for coinciding with the up to 5% ethanol whereas E10 gives a currently only requires a maximum change to winter grade fuel, but this maximum of 10%. The new proposals limit. The Motor Fuel (Composition has not yet been agreed and may still will set a minimum of 5.5% ethanol. and Contents) Regulations will, change. This latter requirement achieves however, require the premium grade Although we have yet to receive a another long-term PRA objective of “Prior to the day of E10 copy of the draft regulatory changes, having a minimum quantity of ethanol it is expected to require a minimum in the EN 228 standard for petrol. Over of 5.5% ethanol, although a maximum of 10% is permissible within the BSI recent years, there have been many incidents of phase separation due to introduction, dispensers EN228 standard. The alternative to a mandated entry of an ad hoc an insufficient amount of ethanol in the mixture to absorb the presence of will need to have a label introduction by some companies would have left many forecourts water, which all tanks have through the natural aspiration of a functional on vehicle compatibility disadvantaged due to lack of storage capacity to hold an additional grade. storage tank. A minimum of 5.5% should reduce this occurrence unless with E10 fixed to them” This would also have created confusion there are other reasons for significant WILL E10 ARRIVE (E10) to have a minimum quantity of 5.5% ethanol. As with the seasonal annexe in the EN228 standard, you IN SEPTEMBER? will be expected to be compliant after a maximum of three tanker load replenishments. The requirement for retaining a protection grade of E5 in the The PRA’s technical director, Phil Monger, discusses issues 97/98 octane super grade only applies surrounding E10 and also red diesel if you already supply two grades of fuel. The number of non-compatible cars is likely to be no more than 2% by that time (September 2021) and a high percentage of these will most likely be classic cars using the super grade already. Some of these may not even be compatible with E5 and are having to make alternative choices such as super grade. Will the additional ethanol content have a negative impact on your storage system? Unlikely if you are already stocking E5 and have followed the EI/ PRA guidance on storing biofuels. Copies are downloadable from the Members’ Section of the PRA website. If you have followed the guidance fully, changed any non-compatible tank gaskets and checked on the suitability of your dispensing equipment, you should be left with little else to do, but do follow the industry guidance. The E10 working party has been ▹ 24 www.ukpra.co.uk
I n n ovato rs I n R etail Tec h n o l o gy Award-winning solutions for the Retail & Forecourt sectors • EPoS solutions • Fuel on self-checkout • Cloud-based software • Multi-branch solutions • Business management solutions • Mobile applications • All leading fuel card providers • All major oil companies • Integrated price poles UK: 0800 731 4591 Ireland: 1890 373 000 www.cbesoftware.co.uk www.cbe.ie info@cbesoftware.co.uk info@cbe.ie @CBE_EPoS CBE Ltd
TECHNICAL Market Review 2021 The government seems determined to stop red diesel use in most sectors apart from areas such as agriculture, fishing and railways RED DIESEL CONSULTATION “Dedicated The storage and sale sold in the UK and the supply is not available customers of red diesel has long been an additional government appears determined to remove Dedicated customers are likely to switch to of red diesel opportunity for retailers, where there is a demand the entitlement to its use in most sectors apart white diesel, so sales may not be totally lost, are likely to for the product. Red diesel is commonly from in agriculture, forestry, horticulture, but it will mean a cut in the profit margin and switch to white used by building fishing, railways and provide the customer contractors and ground non-commercial with many other places diesel, so sales maintenance companies heating systems or to buy their diesel from. may not be for plant not used for road transport. Red domestic heating. This is contained in its To switch the tank to white diesel will also totally lost” diesel contains a dye to differentiate it from road consultation: ‘Reforms to the Tax Treatment of mean extensive cleaning to remove all traces of diesel, often referred Red Diesel and other the dye, which is not a ▹ preparing a set of questions and to as white diesel, and Rebated Fuels’, which simple process. For the answers for use in the publicity motorists found having are proposed to come tank to be switched to campaign. A range of questions has red diesel in a road into force in April 2022. petrol or other products been prepared that retailers may be vehicle are subjected to One of the such as AdBlue, the asked by motorists, including: What’s extensive investigation, justifications for the same process will not the benefit of E10 petrol? Will I still be including the dealer proposal is given as be so arduous. If the able to buy E5? How can I recognise from where it was ‘ensuring businesses proposals are fully E10 at the petrol station? Are all purchased. pay for the harmful implemented, they are vehicles able to use E10? How do I Since 2003 it has been emissions they produce expected to come into know if my vehicle is compatible with a legal requirement for and ‘businesses using effect in April 2022, E10? If my vehicle is not compatible, any retailer selling red red diesel are therefore allowing enough time what can I do? What should I do if diesel to be registered paying far less for the for the stock of fuel to be I mis-fuel with E10? Can E10 petrol as a dealer in controlled harmful emissions they sold and tanks cleaned damage my engine? Can I mix E10 oils (RDCO). The profit produce’. It is hard for white diesel or other and E5 petrol in the tank? These are margin on red diesel to see, however, just products. just some of the questions yet to be is significantly higher how this will reduce For those continuing agreed with answers attached. There and, regardless of the emissions as the use of to sell red diesel there will also be a vehicle checker website onerous requirements to alternative fuels is not will be a requirement to where motorists can enter their vehicle record sales and provide an option for the plant restrict sales to those registration number to get a response. a report to HMRC, it has currently deploying red entitled to use it. We At the time of writing, work is still been regarded as diesel and, in particular, await the outcome continuing to prepare for the publicity worthwhile to store where portable of the consultation campaign allowing six months for and sell. generators are used and continue to make retailers and motorists to prepare for Red diesel accounts on some construction representations to the the introduction. for 15% of all diesel sites where an electrical Treasury on the matter. 26 www.ukpra.co.uk
You can also read